Boeing recently announced it has hired Kevin McAllister, former chief of GE Aviation services, to run its commercial aircraft business. McAllister is the first outsider to lead Boeing’s commercial jet division and the most senior external company hire since 2005. McAllister had been employed by GE since 1980, initially working as a product engineer developing commercial and military engines and moving into GE’s customer support operation in 1998.
Congress has decided to extend the Continuing Resolution (‘CR”), which was set to expire on December 9th, causing government and military budgets to be delayed until at least April 2017. This marks the eighth consecutive year where the Department of Defense will not have received an appropriations bill by year end.
After President Elect Donald Trump’s unexpected win on Tuesday, U.S. defense firms such as Raytheon, Northrop Grumman, and General Dynamics saw significant stock gains on Wednesday. The gains are likely attributed to expectations that President Elect Trump will seek to increase U.S. defense spending over current levels.
The National Business Aviation Association (“NBAA”) hosted its annual Business Aviation and Convention Exhibition in Orlando from November 1st through the 3rd. During the week, roughly 27,000 visitors from executive management, flight department personnel, sales and marketing, and finance / legal firms visited over 1,100 exhibitors to network, view the newest products, and keep up with the latest trends.
Rockwell Collins announced that it inked a deal to buy B/E Aerospace for ~$8.3 billion, valuing B/E at $62 / share, a 22.5% premium over the prior Friday’s closing share price. The proposed deal would consolidate two of the biggest aircraft systems manufacturers, increasing their ability to cross-sell electronics and plane fittings, as well as position Rockwell to lead the development of the “smart” aircraft.
Orbital ATK successfully launched an unmanned Antares rocket into space this past week, almost two years after an engine malfunction caused the rocket to explode immediately after take-off. Orbital ATK replaced its older-designed Russian engines with more advanced Russian built engines which allow the rocket to carry transport cargo in excess of two tons.
Boeing landed an agreement with Qatar Airways for up to 100 jets, comprised of orders for 10 777s, 30 787s, and a signed letter of intent for up to 60 737s, with a combined total list price of $18.6 billion. This sale comes after Qatar Airways CEO, Akbar Al Baker, publicly criticized Airbus over its delays with the A320neo and A350 in June.
For the year through September 27th, Boeing has garnered 357 gross orders, a sharp decrease from 499 orders last year during the same time period. The slowdown in orders has caused the Company’s book to bill ratio to drop to 0.5 compared to 0.7 during the same period last year.